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Treasurer Fitch Urges MS Delegation to Support College Savings
Jackson – Mississippi State Treasurer Lynn Fitch urges the Mississippi members of the U.S. House of Representatives to support H.R. 529, the Savings Enhancement for Education in College Act. The measure is expected for a vote early this week. H.R. 529 would strengthen Mississippi’s 529 college savings plans by enhancing the features of the tax-advantaged accounts.
“This legislation supports Mississippi families in their efforts to save for their children’s college education by making computers an eligible 529 plan expense, allowing the redeposit of funds without negative tax implications in certain circumstances, and updating outdated accounting rules,” stated Treasurer Fitch. “I am asking our delegation to ensure that Mississippi families have the support they need to prepare for their children’s future.”
This year student debt reached an all-time high of $1.3 Trillion for the country, with the 2014 graduating class finishing college with an average of $30,000 in loans. “Families need to do what they can to plan for the cost of college, so their children do not enter the post-graduate world with a mountain of debt. We need to strengthen our college savings plans to help them,” added Treasurer Fitch. “Twelve Million Americans have approximately $250 Billion saved in 529 plans. In December of 2014, Mississippi had the highest contribution rate in the Mississippi Affordable College Savings (MACS) plan in the past three years. The goal of 529 plans is to reverse the trend and to someday out-pace student loan debt. This legislation would be a step in the right direction by offering Mississippi families even more incentives to save.”
Making common sense changes to 529 plans influence the way families manage their finances. “We need to look at the example we’re setting for our children and future generations of our state,” said Treasurer Fitch. “By promoting conservative financial management, we can change the financial culture in Mississippi, which will in turn improve our economy.
